THE shopping frenzy of Black Friday and Cyber Monday are the starting gun for many to the annual ritual of excessive spending over the Christmas period. The average Black Friday consumer is expected to spend £203 (R3 500) on the day this year, double last year's figure.
Christmas is expensive; in 2015, the average UK household spent a considerable £800 on Christmas, with 75 percent of that allocated to gifts. Similar figures, or higher, are anticipated this year, despite shoppers’ concerns about the overall UK economy.
Meanwhile, the average UK adult currently has £3 737 of consumer credit debt, and 44 percent of UK adults have savings amounting to less than £100. Considering these figures, a surge in high cost credit borrowing by UK consumers is expected as families stretch themselves to their financial limits to afford Christmas.
Parents often fondly remember their own Christmas experiences, which they try to emulate (or better) for their own children. Some parents also feel pressure to outdo their previous Christmas efforts, leading to an unattainable cycle of more: more presents, more food, more alcohol, more merriment – all of which results in more spending.
Combined with a layering of festive imagery from the obligatory Christmas TV adverts, and the pressure rapidly mounts.
Retailers are businesses. They want to capitalise on aspirations to create a perfect Christmas, luring you into their stores and websites with attractive deals. As such, the pressure to spend money has never been greater, but be realistic: are the excesses of Christmas worth months of frugal living in 2017?
Here are six ways you can better manage your spending.
1. Make a budget: Recognise how much you can, or want to actually spend, and stick to it. If you do need to borrow money, look for the best repayment plans.
2. Make a list: Plan the gifts, food, decorations and whatever else you would like to purchase for Christmas. Then look for the best deal.
3. Say no to impulse buys: If you haven’t planned to buy it, do you really need it? You still have to pay for it, even if something appears to be a bargain. If you struggle with this, sleep on it before buying.
4. Beware of marketing ploys: be aware of retailer tricks. For example, online purchases over certain amounts often offer free delivery. Do not be tempted to buy more, just for free delivery. The business of retailers is to get you to buy their goods. Your business is to look after your money.
5. Buy thoughtfully: Meaningless gifts are one of the biggest culprits of debt accumulation. Last year, the most unwanted presents included selfie sticks and workout DVDs. A sensible approach is to ask people what they would like. Children can make a list for Santa. And remember, young children do not always value highly priced items.
6. Have fun, but think longer term: Christmas is a celebration. But this celebration should not impact your finances for months and months afterwards.
l Brown is a graduate tutor at Northumbria University, Newcastle. This article first appeared in The Conversation